Business Paper 2 - GCSE
1. What's intrernal growth?: When a business expands by
itself
2. What are methods of internal growth?: New markets
New products
New technology
3. What is external/inorganic growth?: Business growth by
joining forces with
another
4. What are the 2 types of inorganic growth?: Merger
Takeover
5. What is a merger and a takeover?: Merger = 2+
businesses voluntarily agree
to join up and work as one
Takeover = when 1 business buys another (buying 50%+
shares)
6. What is a PLC?: a business that can sell shares on the
stock exchange
7. What are the pros and cons of being a PLC?: + limited
liability
+ a lot of capital can be raised
- Risk of takeover
- accounts have to be made public so less privacy around
financial performance
8. What are examples of internal finance sources?: Sale of
assets
Retained profit
9. What are examples of external finance sources?: Loan
capital
Share capital
10. What are dividends?: a sum of money paid regularly by a
company to its
shareholders out of its profits
11. What is globalisation?: When a business operates
internationally + they become
more connected
, 12. How does globalisation affect businesses?: imports
(lower prices of products
and raw materials than they would be able to produce in the
UK)
Exports (new international markets)
where the business is located
13. What is a multinational?: Large company with facilities
and markets around
the world
14. What are the pros and cons of globalisation?: + new
market opportunities
+ access to tech and resources
- threat from foreign competition
- challenge of adapting products and services to meet the
needs of foreign consumers
15. What are the trade barriers?: Tariffs (taxes on imports)
Trade blocs (promoting trade between a small group of
countries)
16. Why are trade barriers needed?: Protect jobs in domestic
industries
tariffs help domestic firms stay competitive
17. What are ethics in buisneses?: Moral principles that
guide the behaviours of
individuals and businesses
18. How can businesses reduce the impact on the
environment?: Use renewable
energy
Reduce food miles
Use biodegradable packaging
19. How might pressure groups impact a business?: they
could run a campaign
against the business causing bad publicity and forcing them to
change their marketing
mix (e.g make product more ethical)
20. What is the trade off of acting ethically and
environmentally?: - implementing
this can be costly
1. What's intrernal growth?: When a business expands by
itself
2. What are methods of internal growth?: New markets
New products
New technology
3. What is external/inorganic growth?: Business growth by
joining forces with
another
4. What are the 2 types of inorganic growth?: Merger
Takeover
5. What is a merger and a takeover?: Merger = 2+
businesses voluntarily agree
to join up and work as one
Takeover = when 1 business buys another (buying 50%+
shares)
6. What is a PLC?: a business that can sell shares on the
stock exchange
7. What are the pros and cons of being a PLC?: + limited
liability
+ a lot of capital can be raised
- Risk of takeover
- accounts have to be made public so less privacy around
financial performance
8. What are examples of internal finance sources?: Sale of
assets
Retained profit
9. What are examples of external finance sources?: Loan
capital
Share capital
10. What are dividends?: a sum of money paid regularly by a
company to its
shareholders out of its profits
11. What is globalisation?: When a business operates
internationally + they become
more connected
, 12. How does globalisation affect businesses?: imports
(lower prices of products
and raw materials than they would be able to produce in the
UK)
Exports (new international markets)
where the business is located
13. What is a multinational?: Large company with facilities
and markets around
the world
14. What are the pros and cons of globalisation?: + new
market opportunities
+ access to tech and resources
- threat from foreign competition
- challenge of adapting products and services to meet the
needs of foreign consumers
15. What are the trade barriers?: Tariffs (taxes on imports)
Trade blocs (promoting trade between a small group of
countries)
16. Why are trade barriers needed?: Protect jobs in domestic
industries
tariffs help domestic firms stay competitive
17. What are ethics in buisneses?: Moral principles that
guide the behaviours of
individuals and businesses
18. How can businesses reduce the impact on the
environment?: Use renewable
energy
Reduce food miles
Use biodegradable packaging
19. How might pressure groups impact a business?: they
could run a campaign
against the business causing bad publicity and forcing them to
change their marketing
mix (e.g make product more ethical)
20. What is the trade off of acting ethically and
environmentally?: - implementing
this can be costly
